Kansas House Bill 2216 was passed on April 29, 2015, increasing the maximum bond amount for money transmitters from $500,000 to $1 million.
The bill establishes two factors as the new basis for which the State Bank Commissioner determines the required securities:
- volume of transmitter’s business transacted in the state
- impaired financial condition of a licensee (result of reduction of net worth or other relevant financial losses)
The bond amount that each prospective money transmitter is required to post is decided on a case-by-case basis as determined by the State Bank Commissioner. However, each money transmitter bond must be set in an amount of at least $200,000.
H.B. 2216 makes revisions to Section 9 Article 5 of the Kansas Statutes Annotated. While the maximum amount has been amended, the previously enforced bonding conditions remain the same. A few examples of regulations enforced by Kansas money transmitter bonds are as follows:
- Failing to keep and maintain accurate recordkeeping
- Advertising any false or misleading statements in accordance with business practices
- Refusing to permit an examination or investigation by the Commissioner
- Concealing information unjustifiably
- Engaging in the business of money transmission without a license
- Designating an agent without having the license to do so
- Failing to remain in compliance with the Kansas Money Transmitter Act
This bill becomes effective July 1, 2015. If you are looking to post a money transmitter bond in Kansas or have any questions regarding the new legislation updates, give SuretyBonds.com a call at 1 (800) 308-4358. Our team of surety specialists is standing by to assist you with all your bonding needs. For your convenience, you can also visit us online and submit a bond request form now.